Group 1 - The company, 汇彩控股, announced a trading suspension after experiencing a significant drop of 47.54% prior to the halt [1]

Investment Rating - The report suggests a positive outlook for 汇彩控股 (1180.HK) due to the recovery in the Macau tourism and gaming sectors, indicating potential investment opportunities [10]. Core Viewpoints - The number of inbound tourists to Macau has significantly increased post-pandemic, with a year-on-year growth of 23.8% in 2024, reaching 34.92 million visitors [2][9]. - Macau's gaming revenue is also recovering, with a 23.9% year-on-year increase in gross gaming revenue in 2024, amounting to 226.78 billion MOP [2][9]. - The gaming industry is transitioning from a reliance on "VIP" gaming to a more diversified revenue model, as indicated by the decline in the share of "VIP baccarat" from 56.7% in 2017-2019 to 24.1% in 2024 [5][10]. Summary by Sections Tourism Recovery - Inbound tourist numbers to Macau have shown a strong recovery, with 12.9% growth in the first four months of 2025 compared to the previous year [2][9]. - The total number of inbound tourists for 2024 was 34.92 million, reflecting a robust recovery in the tourism sector [2][9]. Gaming Revenue Trends - Macau's gross gaming revenue for 2024 was 226.78 billion MOP, marking a 23.9% increase year-on-year [2][9]. - For the first five months of 2025, the cumulative gross gaming revenue was 97.71 billion MOP, with a year-on-year growth of 1.7% [2][9]. Industry Evolution - The gaming industry is moving towards a more diversified revenue structure, reducing dependence on "VIP" gaming, as evidenced by the significant drop in its revenue share [5][10]. - The Macau government is promoting a diversified tourism strategy, aiming to reduce reliance on single-source revenue streams [5][10]. Company Performance - 汇彩控股 reported a revenue of 1.085 billion HKD in 2024, a 71.0% increase year-on-year, with net profit soaring by 535.6% to 361 million HKD [9][10]. - The company has established itself as a key supplier of gaming equipment, particularly in the live gaming segment, benefiting from the growing demand for "live mixed games" [9][10].

Visitor and Gaming Revenue Growth - In 2024, the total number of visitors to Macau reached approximately 34.9 million, an increase of 23.8% compared to 28.2 million in 2023[14]. - Macau's total gaming revenue increased to MOP 226.8 billion in 2024, up 23.9% from MOP 183.1 billion in 2023[14]. - The contribution of the live mixed gaming machine system to Macau's gaming revenue totaled MOP 4.3 billion in 2024, a 48.3% increase from MOP 2.9 billion in 2023[14]. - The share of live mixed gaming machine system revenue in total gaming revenue rose from 1.6% in 2023 to 1.9% in 2024[14]. - The increase in visitor numbers to Macau has significantly boosted customer traffic at the Golden Diamond Casino, enhancing demand for the company's electronic gaming products[22]. Company Financial Performance - The reported total revenue for the year ending December 31, 2024, was HKD 1,084,900,000, an increase of 71.0% compared to HKD 634,300,000 for the year ending December 31, 2023[23]. - Adjusted EBITDA for the year ending December 31, 2024, was HKD 453,000,000, reflecting a significant increase of 239.1% from HKD 133,600,000 in the previous year[23]. - The company recorded a profit of HKD 381,900,000 for the year ending December 31, 2024, a remarkable increase of 527.1% compared to HKD 60,900,000 in the previous year[23]. - The group's profit for the year was HKD 381.9 million, up from HKD 60.9 million in the previous year[27]. - The adjusted EBITDA from the Macau-managed casino segment was HKD 310.4 million, a 90.7% increase from HKD 162.8 million in the previous year, driven by increased customer numbers and gaming revenue[31]. Revenue Sources and Growth - Revenue from the management services of the gaming venue, specifically the Golden Diamond Casino, increased by 27.2% from HKD 564,800,000 in 2023 to HKD 718,300,000 in 2024[23]. - Revenue from the sale/rental of electronic gaming equipment and systems surged by 539.8%, rising from HKD 57,100,000 in 2023 to HKD 365,300,000 in 2024[17]. - Revenue from the sale/rental of electronic gaming equipment and systems in Macau was HKD 363 million for the year ended December 31, 2024, a significant increase of 539.1% from HKD 56.8 million in 2023[38]. - The group sold 1,461 gaming machines in Macau during the year ended December 31, 2024, compared to 260 machines in 2023, contributing HKD 316.4 million to revenue[38]. Strategic Focus and Market Expansion - The strategic shift towards the mass market segment has positively impacted the company's performance in the competitive landscape of Macau[14]. - The company is expanding into rapidly growing Asian gaming markets, including the Philippines, Vietnam, Cambodia, and Sri Lanka, as well as the North American market[19]. - The strategic focus for 2025 and beyond includes innovation, market expansion, and enhancing operational efficiency to adapt to the evolving demands of the gaming industry[19]. - The group plans to expand its electronic gaming equipment supply business to other Asian markets, particularly the Philippines and North America[40]. Technological Advancements and Innovation - The company continues to invest in the development of electronic gaming equipment and systems to enhance operational efficiency and customer experience[10]. - The group launched a new version of its live mixed gaming machine system, enhancing operational efficiency and cost-effectiveness for casino operators[47]. - The group introduced innovative entertainment products, including the new "Speedwave" gaming machine and groundbreaking electronic table games like "Mori Dice" during the "Echo Insight" event on November 26, 2024[47]. - The company is focused on leveraging technology and innovation in its operations, particularly in software and project development[75]. Corporate Governance and Management - The board believes that corporate governance is key to the company's success and has adopted various measures to ensure high levels of governance[140]. - The company has a strong management team with extensive experience in various sectors, including technology, finance, and gaming[70][74][75]. - The board has established three committees: audit, remuneration, and nomination, to assist the board in overseeing specific matters[175]. - The company has adopted a board diversity policy, ensuring a balanced mix of skills, experience, and diverse perspectives among board members[186]. Shareholder Engagement and Dividends - The board declared an interim dividend of HKD 0.05 per share for the six months ending June 30, 2024, and proposed a final dividend of HKD 0.11 per share for the year ending December 31, 2024, subject to shareholder approval[84]. - The total amount of the proposed final dividend is HKD 115,700,000, based on 1,052,185,315 shares issued as of December 31, 2024[84]. - The company has mechanisms in place to seek independent professional advice to ensure the board can exercise independent judgment[160]. - The company emphasizes shareholder privacy and will not disclose shareholder information without consent unless legally required[158]. Financial Management and Risk - The group maintains a cautious financial management approach, ensuring healthy liquidity to meet operational funding needs[51]. - The group has capital commitments of HKD 7,800,000 for the acquisition of properties, plants, and equipment as of December 31, 2024, compared to HKD 5,500,000 in 2023[59]. - The group faces net foreign exchange risk due to certain borrowings and bank deposits denominated in RMB, which are monitored closely[60]. - The group has not utilized any financial instruments for hedging purposes as of December 31, 2024[56]. Employee and Social Responsibility - The total employee costs, including director remuneration, amounted to HKD 238,600,000 for the year ended December 31, 2024, an increase from HKD 228,700,000 in 2023[65]. - The company is actively involved in social welfare activities, with executives participating in charitable organizations focused on caring for the elderly, women, and children[68]. - The gender ratio of employees, including senior management, as of December 31, 2024, is 55:45, with a goal to maintain this ratio without any single gender exceeding 70%[189]. - The company has a commitment to quality care and holistic development in its community service initiatives[68].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 1,084,850,000, a significant increase of 71% compared to HKD 634,281,000 in 2023[3] - The gross profit for the same period was HKD 677,074,000, representing a gross margin of approximately 62.3%, up from HKD 324,532,000 in 2023[3] - The company's profit before tax surged to HKD 395,567,000, compared to HKD 62,240,000 in the previous year, marking a year-over-year increase of 535%[3] - Net profit attributable to shareholders reached HKD 361,057,000, a substantial rise from HKD 65,782,000 in 2023, reflecting a growth of 448%[3] - Basic earnings per share increased to HKD 34.3, compared to HKD 6.3 in the prior year, indicating a significant improvement in profitability[3] - The total comprehensive income for the year was HKD 377,745,000, compared to HKD 63,524,000 in 2023, showing a growth of 493%[4] - The group reported a total revenue recognition from customer contracts of HKD 1,081,163,000, compared to HKD 631,037,000 in the previous year, indicating a growth of 71.1%[14] - The group reported a profit of HKD 381,900,000 for the year ended December 31, 2024, a significant increase of 527.1% from HKD 60,900,000 in the previous year[39] - Adjusted EBITDA for the year was HKD 453,000,000, reflecting a 239.1% increase from HKD 133,600,000 for the year ended December 31, 2023[40] Revenue Breakdown - Revenue from entertainment management services amounted to HKD 718,308,000, up from HKD 564,759,000, reflecting a growth of 27.2%[14] - Sales of electronic entertainment equipment and systems in Macau surged to HKD 359,287,000 from HKD 53,588,000, marking a substantial increase of 570.5%[14] - Revenue from the management of the gaming venue, specifically the Golden Diamond Casino, was HKD 718.3 million, up from HKD 564.8 million in the previous year, representing a growth of 27.2%[39] - Revenue from the sale/rental of electronic gaming equipment and systems in Macau surged to HKD 363.0 million from HKD 56.8 million, marking an increase of 538.5%[39] - Revenue from live mixed gaming machines at Kwan Pei Wai Casino increased to HKD 806.6 million for the year ending December 31, 2024, compared to HKD 530.9 million for the year ending December 31, 2023[48] Assets and Liabilities - The company's total assets as of December 31, 2024, amounted to HKD 653,764,000, an increase from HKD 373,071,000 in 2023[5] - The total equity attributable to shareholders rose to HKD 501,618,000, compared to HKD 197,685,000 in the previous year, reflecting a growth of 153%[5] - Total liabilities for trade and other payables decreased to 59,867,000 HKD in 2024 from 78,901,000 HKD in 2023[36] - The total outstanding debt as of December 31, 2024, was HKD 156,700,000, a decrease from HKD 180,800,000 as of December 31, 2023[66] - The group's debt-to-asset ratio as of December 31, 2024, was 29.0%, down from 82.7% in 2023, primarily due to a reduction in total borrowings by HKD 24,100,000[68] Dividends - The company declared an interim dividend of 5.0 HK cents per share for 2024, compared to none in 2023, and proposed a final dividend of 11.0 HK cents per share, totaling 115,740,000 HKD, pending shareholder approval[29] - The board proposed a final dividend of HKD 0.11 per share for the year ending December 31, 2024, pending shareholder approval, totaling HKD 115,700,000 based on 1,052,185,315 shares[60] - The total dividend for the year, including an interim dividend of HKD 0.05 per share, is expected to be HKD 0.16 per share, compared to no dividends in 2023[60] Market Strategy and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[6] - The group plans to continue expanding its market presence and enhancing its product offerings in response to evolving industry trends[37] - The company is actively seeking opportunities in Southeast Asia, South Asia, and North America, with plans to open a new office and showroom in Manila, Philippines, in 2025[58] - The company remains optimistic about Macau's future, driven by recent policy enhancements that facilitate easier access for mainland Chinese tourists[55] - The new infrastructure developments, including the opening of the fourth bridge in Taipa in the second half of 2024, are expected to significantly boost tourist arrivals from mainland China[56] Operational Efficiency - The company reported a decrease in financial expenses to HKD 11,324,000 from HKD 18,648,000 in 2023, indicating improved cost management[3] - Research and development expenses for the year amounted to HKD 32,516,000, an increase from HKD 27,477,000 in 2023, representing a growth of about 18%[24] - Capital expenditures totaled HKD 27,614,000, compared to HKD 21,807,000 in the previous year, indicating an increase of about 26%[24] - The company is committed to investing in product design and has established a new production line in Macau to meet the growing demand for electronic gaming machines[58] Governance and Compliance - The independent auditor for the group's consolidated financial statements for the year ended December 31, 2024, is Deloitte[85] - The audit committee has reviewed the audited consolidated financial statements and the relevant accounting principles adopted by the group[86] - The group’s consolidated financial statements for the year ending December 31, 2024, have been approved by the board on March 27, 2025[87] - The company adheres to the corporate governance code as outlined in the listing rules[89] - The financial reporting standards followed are in accordance with Hong Kong accounting standards[90]

Financial Performance - For the six months ended June 30, 2024, the total revenue reported by the company was HKD 425.3 million, an increase of 72.4% compared to HKD 246.7 million for the same period in 2023[3]. - The company recorded a profit of HKD 119.4 million for the six months ended June 30, 2024, compared to a loss of HKD 3.0 million for the same period in 2023[3]. - Adjusted EBITDA for the six months ended June 30, 2024, was HKD 147.7 million, representing a significant increase of 376.5% from HKD 31.0 million for the same period in 2023[4]. - The group recorded a profit of HKD 119.4 million for the six months ended June 30, 2024, compared to a loss of HKD 3.0 million for the same period in 2023, marking a turnaround in performance[7]. - The adjusted EBITDA for the six months ended June 30, 2024, was HKD 147.7 million, a significant increase from HKD 31.0 million for the same period in 2023, representing a growth of 376.5%[6]. - The company reported a profit before tax of HKD 121,053,000, compared to a loss of HKD 2,978,000 in the previous year[43]. - Net profit for the period was HKD 119,407,000, a turnaround from a loss of HKD 3,022,000 in the prior year[44]. - Total comprehensive income for the period was HKD 114,801,000, compared to a loss of HKD 1,343,000 in the same period last year[44]. Revenue Sources - Revenue from the company's managed casino, Golden Dragon Paradise Casino, was HKD 356.5 million for the six months ended June 30, 2024, compared to HKD 240.0 million for the same period in 2023[3]. - Revenue from the sale and leasing of electronic gaming equipment and systems in Macau was HKD 68.2 million for the six months ended June 30, 2024, a substantial increase from HKD 3.7 million for the same period in 2023[3]. - The total gaming revenue of the Venetian Macao for the six months ended June 30, 2024, was HKD 651.7 million, an increase of 48.3% compared to HKD 439.5 million for the same period in 2023[10]. - The group's attributable revenue from the Venetian Macao was HKD 356.5 million for the six months ended June 30, 2024, up 48.5% from HKD 240.0 million in the same period of 2023[11]. - Revenue from entertainment management services reached HKD 356,515 thousand, up from HKD 240,052 thousand, indicating a growth of about 48.6% year-over-year[52]. - The entertainment systems segment generated revenue of HKD 68,144 thousand, compared to HKD 3,860 thousand in the previous year, reflecting a substantial increase of approximately 1,663%[52]. Market and Visitor Trends - The number of visitors to Macau increased to approximately 16.7 million for the six months ended June 30, 2024, a rise of 44.0% from 11.6 million for the same period in 2023[3]. - Macau's gaming revenue reached MOP 113.8 billion for the six months ended June 30, 2024, up 42.1% from MOP 80.1 billion for the same period in 2023[3]. - The average daily revenue per traditional gaming table increased to HKD 66.0 thousand, up from HKD 45.8 thousand year-on-year[10]. - The average daily revenue per live mixed gaming machine increased to HKD 2,216, compared to HKD 1,435 in the previous year[10]. Operational Developments - The company aims to leverage its expertise to drive growth in the Macau gaming sector as it continues to benefit from the recovery of the industry[3]. - The company is committed to utilizing its professional knowledge to enhance performance in the region and capitalize on the recovery of the Macau gaming industry[3]. - The group has initiated plans to expand its electronic gaming equipment and systems business into other Asian markets, particularly the Philippines and North America[12]. - The group has entered into agreements to trial 24 innovative slot machines in several Philippine integrated resorts[12]. - The group is preparing to launch a new series of electronic table games, expecting positive contributions to future financial performance based on early customer feedback[15]. Financial Management and Position - The financial expenses for the six months ended June 30, 2024, were HKD 6.1 million, down from HKD 9.6 million in the same period of 2023[6]. - The group reported a net asset value of HKD 333,300,000 as of June 30, 2024, an increase of HKD 114,800,000 or 52.5% compared to HKD 218,500,000 on December 31, 2023, primarily due to a profit of HKD 119,400,000 during the period[17]. - The group has outstanding loans from Dr. Chen totaling HKD 36,300,000 as of June 30, 2024, down from HKD 46,300,000 on December 31, 2023[18]. - The group maintains a cautious financial management approach, ensuring healthy liquidity to meet operational funding needs[17]. - The total liabilities as of June 30, 2024, amount to HKD 60,752,000, a decrease from HKD 78,901,000 as of December 31, 2023, representing a reduction of about 23%[70]. - The company's debt-to-equity ratio as of June 30, 2024, was 50.9%, down from 82.7% as of December 31, 2023, primarily due to a reduction in total borrowings and an increase in net asset value[19]. Employee and Operational Costs - The total employee costs for the six months ended June 30, 2024, amounted to HKD 115,300,000, compared to HKD 109,700,000 for the same period in 2023[27]. - The group had capital commitments of HKD 9,000,000 for the acquisition of properties, plants, and equipment as of June 30, 2024, up from HKD 5,500,000 as of December 31, 2023[21]. - The company incurred finance costs of HKD 6,144,000, down from HKD 9,626,000, indicating improved cost management[43]. Shareholder and Governance Matters - The group has declared an interim dividend of HKD 0.05 per share for the six months ending June 30, 2024, amounting to HKD 52,600,000 based on 1,052,185,315 shares issued[16]. - The company has maintained compliance with the corporate governance code, with a noted deviation regarding the separation of the roles of chairman and CEO[37]. - The major shareholder August Profit Investments Limited holds 630,836,720 shares, representing approximately 59.95% of the total shares[31]. - The total number of options available under the share option plan is 105,218,531, equivalent to 10% of the total issued shares as of the plan's adoption date and the report date[34]. Future Outlook and Strategic Initiatives - The company plans to expand its market presence in Macau, targeting a 10% increase in market share by the end of 2024[89]. - Future guidance indicates a projected revenue growth of 12% for the upcoming fiscal year, driven by increased customer engagement and new game releases[88]. - The company is exploring potential acquisitions to diversify its portfolio and strengthen its competitive position in the gaming industry[89]. - The board has approved a new share incentive plan to attract and retain top talent, which is expected to enhance overall company performance[89].

Financial Performance - For the six months ended June 30, 2024, the company reported a profit of HKD 119,407,000 compared to a loss of HKD 3,022,000 in the same period of 2023, indicating a significant turnaround in performance[5] - Total comprehensive income for the period was HKD 114,801,000, a substantial increase from a loss of HKD 1,343,000 in the previous year[5] - The company reported a basic earnings per share of HKD 11.0 for the period, a notable improvement from the previous year[4] - The group achieved a profit before tax of HKD 121,053,000 for the six months ended June 30, 2024, compared to a loss of HKD 2,978,000 in the same period of 2023[15] - The group recorded a profit of HKD 119.4 million for the six months ending June 30, 2024, compared to a loss of HKD 3 million for the same period in 2023[44] Revenue Growth - Revenue for the six months ended June 30, 2024, reached HKD 425,271,000, a significant increase of 72.5% compared to HKD 246,718,000 for the same period in 2023[12] - The entertainment management services segment generated revenue of HKD 356,515,000, up 48.5% from HKD 240,052,000 year-over-year[15] - The group’s total revenue from contracts with customers was HKD 423,337,000, compared to HKD 245,219,000 in the previous year, marking a 72.5% increase[12] - The group's revenue from the gaming operations at the Macau casino reached HKD 356.5 million for the six months ended June 30, 2024, an increase of 48.5% compared to HKD 240 million for the same period in 2023[47] Asset and Liability Management - The company's non-current assets amounted to HKD 331,682,000 as of June 30, 2024, slightly down from HKD 344,660,000 at the end of 2023[6] - Current assets increased to HKD 278,222,000 from HKD 177,732,000, reflecting improved liquidity[6] - The total liabilities decreased from HKD 154,557,000 to HKD 132,783,000, indicating a reduction in financial obligations[7] - The company's equity increased significantly to HKD 333,316,000 from HKD 218,514,000, showcasing strong financial health[7] - The group’s net asset value as of June 30, 2024, was HKD 333,300,000, an increase of HKD 114,800,000 or 52.5% from HKD 218,500,000 as of December 31, 2023[55] Cash Flow and Expenditures - Cash and bank balances rose to HKD 128,133,000 from HKD 59,627,000, enhancing the company's cash position[6] - Capital expenditures for the period totaled HKD 13,285,000, a substantial increase from HKD 8,639,000 in the prior year[15] - The group had capital commitments of HKD 9,000,000 for the acquisition of property, plant, and equipment as of June 30, 2024, compared to HKD 5,500,000 as of December 31, 2023[61] Taxation and Expenses - The group reported a tax expense of HKD 1,646,000 for the period, compared to HKD 44,000 in the previous year[15] - The company recognized a tax expense of HKD 1,646,000 for the six months ended June 30, 2024, compared to HKD 24,208,000 for the same period in 2023, indicating a significant decrease[25] - The group incurred financial expenses of HKD 6,144,000, down from HKD 9,626,000 in the previous year, reflecting improved cost management[20] Employee and Operational Costs - The company reported a total employee cost of HKD 54,922,000 for the six months ended June 30, 2024, compared to HKD 55,690,000 for the same period in 2023, reflecting a decrease of approximately 1.4%[24] - The total employee costs for the six months ended June 30, 2024, amounted to HKD 115,300,000, an increase from HKD 109,700,000 for the same period in 2023[67] Market and Industry Insights - Macau welcomed approximately 16.7 million visitors in the six months ending June 30, 2024, a 44.0% increase from 11.6 million visitors in the same period of 2023[40] - Macau's gaming revenue reached MOP 113.8 billion in the six months ending June 30, 2024, up 42.1% from MOP 80.1 billion in the same period of 2023[40] - The resurgence of tourism in Macau, following the lifting of pandemic restrictions, has significantly boosted the group's gaming revenue and overall business performance[52] Strategic Plans and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[3] - The group aims to leverage its expertise to drive performance growth in the Macau gaming sector[40] - The group is actively expanding its gaming equipment and systems supply business into other Asian markets, particularly the Philippines, which has the largest electronic gaming machine market in Asia[53] Corporate Governance - The company has adhered to the corporate governance code for the six months ending June 30, 2024, with the exception of the separation of the roles of Chairman and CEO as stipulated in code provision C.2.1[70] - The interim report for the six months ending June 30, 2024, has been reviewed by the audit committee and independent auditor Deloitte, in accordance with the relevant Hong Kong standards[71]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of HKD 634.3 million, an increase of 113.0% compared to HKD 297.8 million for the fiscal year ending December 31, 2022[22]. - The adjusted EBITDA for the fiscal year ending December 31, 2023, was HKD 133.6 million, a significant recovery from a loss of HKD 109 million in the previous year[22]. - The total revenue for the year ended December 31, 2023, was HKD 634.3 million, a significant increase from HKD 297.8 million in 2022, representing a growth of 113.1%[31]. - The company reported a profit of HKD 60.9 million for the year ended December 31, 2023, compared to a loss of HKD 166.3 million in 2022[31]. - The adjusted EBITDA for the Macau casino segment was HKD 162.8 million for the year ended December 31, 2023, compared to a loss of HKD 38 million in 2022, indicating a turnaround in performance[33]. - The total comprehensive income for the year was HKD 63.524 million, a significant recovery from a loss of HKD 161.908 million in the previous year[111]. - The company reported a pre-tax profit of HKD 62,240,000 for the year ending December 31, 2023, compared to a loss of HKD 170,962,000 in 2022[191]. - The company recorded a loss of HKD 154,565 thousand for the year, compared to a loss of HKD 166,330 thousand in the previous year, indicating an improvement of approximately 7.1%[189]. Revenue Sources - Revenue from the management services provided to the Casino Kam Pek Paradise increased by 111.6%, rising from HKD 266.9 million in 2022 to HKD 564.8 million in 2023[22]. - The sales of electronic gaming equipment and systems contributed approximately HKD 56.8 million in revenue, a substantial increase of 667.6% from HKD 7.4 million in the previous year[24]. - The revenue from the Macau-managed casino, 金碧滙彩娛樂場, was HKD 564.8 million, up from HKD 266.9 million in the previous year, marking a 111.5% increase[31]. - The total gaming revenue for the managed casino, 金碧滙彩娛樂場, was HKD 1,033,600,000 for the year ended December 31, 2023, representing an increase of 110.6% from HKD 490,900,000 for the year ended December 31, 2022[60]. - Traditional gaming table revenue increased to HKD 452.7 million from HKD 207.5 million, representing a growth of 118%[66]. - Live mixed gaming machine table revenue rose to HKD 530.9 million from HKD 255.9 million, marking a 107% increase[66]. - Total gaming revenue reached HKD 1,033.6 million, up from HKD 490.9 million, reflecting a growth of 110%[66]. Market Expansion and Strategy - The company is actively seeking to expand its gaming machine and product offerings in the Macau gaming market as well as in rapidly growing Southeast Asian and North American markets[24]. - The company has initiated a new business line providing innovative and renewable energy solutions starting in 2023, aiming to diversify its business portfolio[20]. - The company aims to leverage technology to reduce operational costs and enhance gaming efficiency and productivity[8]. - The company has positioned itself as a supplier focused on mid-market customers, providing management services to satellite casinos in Macau[8]. - The company is exploring partnerships for investments to further diversify its business operations[20]. - The company continues to invest in the development of electronic gaming equipment and systems, aiming to enhance gaming efficiency and optimize operations[41]. - The company plans to continue investing in high-tech and R&D in the electric vehicle charging sector to become a comprehensive solution provider[46]. Operational Metrics - The average number of gaming tables managed at the casino decreased to 30 in 2023 from 47 in 2022, with all tables operational as of December 31, 2023[36]. - The average number of gaming tables decreased to 34 from 39, while the net win per table per day increased to HKD 79.3 thousand from HKD 32.6 thousand[66]. - The average net win per gaming machine per day increased to HKD 1,691 from HKD 1,422, indicating a growth of 18.9%[66]. - The average net win per gaming table per day increased to HKD 145.5 thousand from HKD 87.6 thousand, showing a growth of 66%[66]. - The average number of slot machines remained stable at 96, with slot machine revenue increasing to HKD 50.0 million from HKD 27.5 million[66]. Environmental and Social Responsibility - Scope 1 emissions increased by 34.5% due to higher gasoline and diesel consumption, attributed to an increase in visitors to the gaming venue[85]. - Total emissions decreased by 2.4% compared to the previous year, with a target to maintain or reduce greenhouse gas emissions to pre-pandemic levels[85]. - The company aims to reduce non-hazardous waste levels to pre-pandemic levels by the end of 2024[88]. - Water consumption at the casino increased by 82.9% compared to 2022, primarily due to an increase in visitors following the lifting of travel restrictions in February 2023[90]. - The company has implemented measures to reduce water consumption, including the establishment of a water bar to minimize bottled water usage[91]. - The company is prioritizing climate-related risks using a quantitative scoring method to assess their impact and adaptability[96]. - The company has developed emergency plans to address disruptions caused by extreme weather events, ensuring operational continuity[126]. Workforce and Employment - The number of employees in Macau decreased from 142 in 2022 to 103 in 2023, indicating a reduction in workforce[100]. - Total number of employees decreased from 142 in 2022 to 103 in 2023, representing a reduction of approximately 27.5%[128]. - Male employees decreased from 46 in 2022 to 34 in 2023, a decline of 26.1%[128]. - Female employees decreased from 96 in 2022 to 69 in 2023, a decline of 28.1%[128]. - Employees aged 30 and below decreased from 23 in 2022 to 12 in 2023, a decline of 47.8%[128]. - Employees aged 30 to 50 decreased from 72 in 2022 to 58 in 2023, a decline of 19.4%[128]. - Employees aged 50 and above decreased from 47 in 2022 to 33 in 2023, a decline of 29.8%[128]. - The company has implemented various social activities to promote harmony among employees across departments[131]. - The company is committed to maintaining a balance between work and life for employees through fair working hours and leave policies[131]. Compliance and Governance - The group has not identified any serious violations of anti-bribery and anti-money laundering regulations in Hong Kong and Macau for the year ended December 31, 2023[160]. - The group has not been aware of any serious violations of data privacy laws in Hong Kong and Macau for the year ended December 31, 2023[171]. - The company has not reported any serious violations of air pollution or water pollution regulations in Hong Kong or Macau for the year ending December 31, 2023[94]. - The group has implemented a complaint handling mechanism at the Golden Sands Casino to ensure timely and effective resolution of customer complaints[168]. - The group is committed to providing a safe, clean, and comfortable environment for casino customers, with monthly departmental meetings aimed at improving service quality[170]. Assets and Liabilities - Non-current assets decreased from HKD 352,070 thousand in 2022 to HKD 344,660 thousand in 2023, a decline of approximately 2.3%[184]. - Current assets increased significantly from HKD 95,198 thousand in 2022 to HKD 177,732 thousand in 2023, representing an increase of approximately 86.7%[184]. - Total equity rose from HKD 157,690 thousand in 2022 to HKD 218,514 thousand in 2023, marking an increase of approximately 38.5%[186]. - Trade and other receivables increased from HKD 33,613 thousand in 2022 to HKD 82,064 thousand in 2023, a growth of approximately 143.5%[184]. - The company's cash and bank balances increased from HKD 20,179 thousand in 2022 to HKD 59,627 thousand in 2023, an increase of approximately 195.5%[184]. - Current liabilities remained relatively stable, decreasing slightly from HKD 149,631 thousand in 2022 to HKD 149,321 thousand in 2023[184]. - The company's reserves increased from HKD 128,262 thousand in 2022 to HKD 196,633 thousand in 2023, an increase of approximately 53.3%[186].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a profit of HKD 60,937 thousand, compared to a loss of HKD 166,330 thousand in the previous year[2]. - The total comprehensive income attributable to the company's owners for the year was HKD 68,371 thousand, a significant improvement from a loss of HKD 150,582 thousand in the prior year[3]. - Revenue for the year reached HKD 634,281 thousand, up from HKD 297,820 thousand in 2022, indicating a growth of approximately 113%[27]. - The basic earnings per share for the year was HKD 6.3, compared to a loss per share of HKD 14.7 in the previous year[28]. - The total comprehensive income for the year was HKD 63,524 thousand, compared to a loss of HKD 161,908 thousand in 2022[30]. - The profit for the year amounted to HKD 60,937,000, compared to a loss of HKD 154,565,000 in the previous year[62]. - The adjusted EBITDA for the year was HKD 133,600,000, compared to a loss of HKD 109,000,000 for the previous year[103]. - The group recorded a profit of HKD 60.9 million for the year ended December 31, 2023, compared to a loss of HKD 166.3 million in the previous year, marking a significant turnaround[152]. Revenue Growth - The company generated HKD 564,759 thousand from casino management services, a substantial increase from HKD 266,904 thousand in the previous year[23]. - The company reported a significant increase in revenue from the Entertainment Management Services segment, which generated HKD 564,759,000 in 2023, up from HKD 266,904,000 in 2022, marking a growth of approximately 112%[77]. - The company’s revenue from Macau was HKD 621,591,000 in 2023, a significant rise from HKD 274,303,000 in 2022, representing an increase of approximately 126%[77]. - Revenue from the gaming operations managed in Macau was HKD 564,800,000, up from HKD 266,900,000 in the previous year[100]. - The total gaming revenue for the gaming venue was HKD 1,033.6 million for the year ended December 31, 2023, representing an increase of 110.6% from HKD 490.9 million for the year ended December 31, 2022[131]. - Revenue from the sale/rental of electronic gaming equipment and systems in Macau was HKD 56.8 million for the year ended December 31, 2023, a significant increase of 667.6% from HKD 7.4 million for the year ended December 31, 2022[133]. - The group’s share of revenue from the managed casino was HKD 564.8 million for the year ended December 31, 2023, up 111.6% from HKD 266.9 million in 2022[157]. Financial Position - The financial position as of December 31, 2023, reflects improved operational efficiency and cost management strategies implemented during the year[4]. - Total assets decreased from HKD 352,070,000 to HKD 344,660,000, a decline of approximately 2.3% year-over-year[31]. - Current liabilities increased from HKD 149,631,000 to HKD 149,321,000, a decrease of about 0.2% year-over-year[31]. - Net current assets improved from a negative HKD 54,433,000 to a positive HKD 28,411,000, indicating a significant turnaround[31]. - The company's equity increased from HKD 157,690,000 to HKD 218,514,000, representing a growth of approximately 38.5% year-over-year[31]. - The company reported a cash balance increase from HKD 20,179,000 to HKD 59,627,000, a growth of about 195% year-over-year[31]. - The total liabilities increased to HKD 78,901,000 from HKD 52,217,000 in the previous year[115]. - The group's total outstanding debt as of December 31, 2023, was HKD 180,800,000, a decrease from HKD 188,300,000 in the previous year[192]. - The group's debt-to-asset ratio improved to 82.7% as of December 31, 2023, down from 119.4% in 2022, due to net repayments of shareholder loans and an increase in net asset value[197]. Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to enhance its service offerings[1]. - The company is exploring potential mergers and acquisitions to further strengthen its market position and diversify its revenue streams[1]. - The company is involved in the development and leasing of electronic entertainment equipment and systems, as well as smart charging stations for electric vehicles[33]. - The company has plans for market expansion and new product development in the electric vehicle charging sector[33]. - The group plans to expand its innovative and renewable energy solutions business, particularly in the electric vehicle charging station sector, to capitalize on the growing demand in mainland China[140]. - The group is actively seeking potential opportunities in overseas markets to expand its electronic gaming equipment and systems business, particularly in Southeast Asia and North America[161]. Research and Development - Research and development expenses for 2023 were HKD 27,477,000, down from HKD 46,969,000 in 2022, indicating a reduction of about 41%[59]. - The company continues to invest in the research and development of high-tech entertainment products to enhance market competitiveness[162]. - The company has initiated the development of smart charging stations and equipment for electric motorcycles, bicycles, and cars in 2023, indicating a focus on innovative and renewable energy solutions[49]. Tax and Regulatory Matters - The company is actively monitoring the impact of new tax regulations related to international tax reforms[39]. - The company is applying for a tax exemption from the Macau government for the period from January 1, 2023, to December 31, 2025, related to its gaming revenue[82]. Employee and Operational Metrics - Total employee costs decreased from HKD 116,807,000 in 2022 to HKD 108,280,000 in 2023, a reduction of approximately 7%[79]. - The total employee costs, including director remuneration, amounted to HKD 228,700,000 for the year ended December 31, 2023, compared to HKD 219,600,000 in 2022[178]. - The average number of gaming tables managed at the group’s casino, 金碧滙彩娛樂場, decreased from 47 to 30 year-over-year[154]. - The average daily net win per gaming table increased to HKD 79.3 thousand in 2023 from HKD 32.6 thousand in 2022[155]. Dividends and Shareholder Returns - The company did not declare any dividends for the years ending December 31, 2023, and December 31, 2022[63]. - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023, consistent with the previous year[163].

Revenue Performance - The reported total revenue for the six months ended June 30, 2023, was HKD 246.7 million, an increase of 36.2% compared to HKD 181.1 million for the same period in 2022[18]. - The increase in total revenue was primarily due to the rise in income from providing casino management services in Macau as travel restrictions were eased[18]. - Revenue from the management of the gaming tables at the Casino Grand Lisboa was HKD 240,000,000, an increase of 55.8% compared to HKD 154,000,000 for the same period in 2022[27]. - The total gaming revenue for the group reached HKD 439.5 million for the six months ended June 30, 2023, up from HKD 283.1 million in the same period of 2022, indicating an overall increase of approximately 55.2%[49]. - The group reported segment revenue of HKD 240,052,000 from casino management services for the six months ended June 30, 2023, compared to HKD 154,041,000 for the same period in 2022, representing a growth of 55.8%[136]. - The company recorded a total of HKD 243,733,000 in revenue from Macau for the six months ended June 30, 2023, up from HKD 158,838,000 in the same period of 2022[174]. Profitability and Loss - The company reported a loss of HKD 3.0 million for the six months ended June 30, 2023, a significant improvement from a loss of HKD 96.7 million in the same period of 2022[7]. - For the six months ended June 30, 2023, the group reported a loss of HKD 3,000,000, significantly reduced from a loss of HKD 96,700,000 for the same period in 2022[21]. - The group incurred a pre-tax loss of HKD 2,978,000 for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 96,494,000 for the same period in 2022, indicating a significant improvement[136]. - The company reported a loss before tax of HKD 2,978,000, a substantial reduction from a loss of HKD 96,494,000 in the prior year[103]. - For the six months ended June 30, 2023, the company reported a profit attributable to shareholders of HKD 680,000, compared to a loss of HKD 87,930,000 for the same period in 2022[165]. Cost Management - Adjusted EBITDA for the gaming segment in Macau was HKD 55.8 million for the six months ended June 30, 2023, compared to a loss of HKD 23.3 million for the same period in 2022, indicating a significant turnaround[8]. - Adjusted EBITDA for the six months ended June 30, 2023, was HKD 31,000,000, compared to a negative HKD 64,400,000 for the same period in 2022[20]. - The adjusted EBITDA for the electronic entertainment equipment and systems segment was a loss of HKD 17.5 million for the six months ended June 30, 2023, compared to a loss of HKD 30.4 million for the same period in 2022, reflecting a significant reduction in losses due to effective cost-saving strategies implemented in response to the COVID-19 pandemic[47]. - Operating and administrative expenses decreased to HKD 67,321,000 from HKD 88,164,000 year-on-year, reflecting improved cost management[103]. - Research and development expenses for the six months ended June 30, 2023, were HKD 15,070,000, down from HKD 28,783,000 for the same period in 2022, reflecting a reduction of 47.6%[144]. Financial Position - As of June 30, 2023, the group had bank deposits of HKD 47,300,000, including HKD 46,500,000 in fixed deposits[30]. - The company’s net assets as of June 30, 2023, were HKD 153,647,000, a decrease from HKD 157,690,000 as of December 31, 2022[81]. - Cash and cash equivalents amounted to HKD 56,145,000, with net current liabilities of HKD 28,091,000 as of June 30, 2023[85]. - The total assets less current liabilities amounted to HKD 335,304,000 as of June 30, 2023, compared to HKD 297,637,000 as of December 31, 2022, representing an increase of approximately 12.7%[106]. - Cash and cash equivalents increased to HKD 56,145,000 as of June 30, 2023, from HKD 20,179,000 as of December 31, 2022, marking a significant increase of approximately 178.5%[109]. Employee and Operational Metrics - The group has approximately 700 employees, including about 440 gaming business employees managed by a subsidiary[37]. - The group managed 40 gaming tables as of June 30, 2023, down from 47 tables as of December 31, 2022, with all 40 tables operational[22]. - The average number of traditional gaming tables increased to 104.8 in 2023 from 65.8 in 2022, while live mixed gaming tables rose to 124.6 from 81.9[11]. - The average number of traditional gaming tables decreased to 32 for the six months ended June 30, 2023, down from 46 in the same period of 2022, reflecting a strategic adjustment in operations[49]. Governance and Compliance - The company has maintained compliance with the corporate governance code, with a review of its governance structure planned for the future[72]. - The company continues to ensure a balanced distribution of power and authority within its governance structure, with experienced independent non-executive directors overseeing key decisions[72]. - The company has adopted a cash flow forecast based on expected revenues and expenses for at least the next twelve months, considering market conditions and growth rates[85]. Market and Strategic Developments - The company plans to continue expanding its entertainment management services in Macau, focusing on enhancing operational efficiency and customer engagement[151]. - The group has renewed its service agreement with 澳娛綜合 for casino management services, effective from January 1, 2023, to December 31, 2025[127]. - The group has a new gaming license contract granted by the Macau government, effective from January 1, 2023, to December 31, 2032, for a duration of ten years[127].

Financial Performance - The total comprehensive income attributable to the owners of the company for the period was HKD 2,317,000, compared to a loss of HKD 85,082,000 in the previous year[14]. - The company reported revenue from customer contracts of HKD 245,219,000, an increase from HKD 177,884,000 year-over-year[25]. - The reported total revenue for the six months ended June 30, 2023, was HKD 246,700,000, an increase of 36.2% compared to HKD 181,100,000 for the same period in 2022[62]. - The company reported a loss attributable to owners of the company of HKD 680,000 for the six months ended June 30, 2023, compared to a loss of HKD 87,930,000 in the same period last year[40]. - The gross profit for the period was HKD 114,903,000, significantly up from HKD 20,261,000 in the previous year, indicating a substantial improvement in profitability[166]. - The company incurred a loss of HKD 3,022,000 for the six months ended June 30, 2023, a significant reduction from a loss of HKD 96,678,000 in the same period of 2022, reflecting improved operational efficiency[185]. - The total comprehensive expenses for the period amounted to HKD 1,343,000, a significant decrease from HKD 93,550,000 in the prior year, indicating better cost management[167]. Revenue Sources - Customer A in the entertainment venue management services segment generated revenue of HKD 240,052,000, up from HKD 154,041,000 in the previous year[32]. - The increase in total revenue was primarily due to higher income from providing entertainment venue management services in Macau, following the easing of travel restrictions[62]. - Total revenue from the gaming management services at the Casino Grand Lisboa for the six months ended June 30, 2023, was HKD 240,000,000, an increase of 55.8% from HKD 154,000,000 for the same period in 2022[90]. - The total gaming revenue for the Kwan Tai Casino managed by the group reached HKD 439.5 million, an increase of 55.2% from HKD 283.1 million for the six months ended June 30, 2022[69]. - The group reported gaming revenue of HKD 439.5 million for the six months ended June 30, 2023, up from HKD 283.1 million in the same period last year[106]. Assets and Liabilities - Non-current assets totaled HKD 363,395,000 as of June 30, 2023, with property, plant, and equipment valued at HKD 231,696,000[3]. - The net asset value of the company decreased to HKD 153,647,000 from HKD 157,690,000[17]. - The company’s total liabilities include bank borrowings due within one year amounting to HKD 9,330,000, up from HKD 6,087,000[15]. - As of June 30, 2023, the total outstanding debt of the group was HKD 230,900,000, an increase from HKD 188,300,000 as of December 31, 2022[135]. - The group's asset-to-liability ratio as of June 30, 2023, was 150.3%, up from 119.4% as of December 31, 2022, primarily due to an increase in shareholder loans and bank borrowings[137]. Cash Flow and Liquidity - The company’s cash and bank balances increased to HKD 56,145,000 from HKD 20,179,000 year-over-year[15]. - The company had cash and cash equivalents of HKD 56,145,000 as of June 30, 2023, with net current liabilities of HKD 28,091,000, suggesting a stable liquidity position[171]. - The company expects to maintain sufficient liquidity to meet its financial obligations over the next twelve months, supported by cash on hand and anticipated operational cash flows[193]. - The company has adopted a prudent financial management approach to maintain a healthy liquidity position as of June 30, 2023[93]. Operational Efficiency - Research and development expenses for the six months ended June 30, 2023, were HKD 15,070,000, a decrease from HKD 28,783,000 for the same period in 2022[50]. - The adjusted EBITDA for the six months ended June 30, 2023, was a profit of HKD 31 million, compared to a loss of HKD 64.4 million for the same period in 2022, indicating a significant turnaround[80]. - The adjusted EBITDA from the group's other businesses was a loss of HKD 700,000 for the six months ended June 30, 2023, an improvement from a loss of HKD 3.6 million in the same period of 2022[81]. - The adjusted EBITDA for the electronic entertainment equipment and systems segment was a loss of HKD 17.5 million for the six months ended June 30, 2023, compared to a loss of HKD 30.4 million for the same period in 2022, reflecting a significant improvement due to effective cost-saving strategies implemented in response to the COVID-19 pandemic[102]. Business Developments - The company has a new gaming license contract granted by the Macau government, effective from January 1, 2023, to December 31, 2032, for a duration of ten years[19]. - The company plans to invest more resources in developing innovative electronic entertainment equipment and systems for overseas markets, particularly North America[88]. - The company aims to become a comprehensive solution provider for smart charging stations and related equipment for electric vehicles in mainland China[91]. - The group has initiated a new business supplying smart charging stations and equipment for electric motorcycles, bicycles, and cars in mainland China[109]. - The group plans to continue investing in high-tech entertainment products and leveraging cutting-edge technology to enhance its core competitiveness in the electronic entertainment equipment and systems sector[112]. Corporate Governance - The company’s interim report for the six months ended June 30, 2023, has been reviewed by the audit committee and independent auditor[155]. - The roles of the chairman and CEO have been separated, with Dr. Chan serving as co-chairman and managing director, while Mr. Zhang has been appointed as co-chairman[152]. - The board believes the current structure provides strong and consistent leadership while ensuring a balance of power and protecting shareholder interests[153]. - The company has adopted a standard code for directors' securities trading behavior, ensuring compliance by all directors as of June 30, 2023[148]. Market Conditions - The number of customers at the managed casinos in Macau increased significantly due to the recovery of cross-border travel[62]. - The total number of visitors to Macau for the six months ended June 30, 2023, was approximately 11,600,000, a 236.1% increase compared to the same period in 2022[89]. - Macau's total gaming revenue for the first half of 2023 was MOP 80,100,000,000, a year-on-year increase of 204.6% from MOP 26,300,000,000 in the same period of 2022[89].